Mortgage rates pulled back again after creeping up over 7% last week, ticking down to just under, averaging 6.99% this week, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac, released Thursday.
This week’s numbers:
- The 30-year FRM averaged 6.99% as of June 6, 2024, down from last week when it averaged 7.03%. A year ago at this time, the 30-year FRM averaged 6.71%.
- The 15-year FRM averaged 6.29%, down from last week when it averaged 6.36%. A year ago at this time, the 15-year FRM averaged 6.07%.
What the experts are saying:
“Mortgage rates retreated this week given incoming data showing slower growth,” said Sam Khater, Freddie Mac’s chief economist. “Rates are just shy of seven percent, and we expect them to modestly decline over the remainder of 2024. If a potential buyer is looking to buy a home this year, waiting for lower rates may result in small savings, but shopping around for the best rate remains tremendously beneficial.”
Realtor.com Sr. Economist, Ralph McLaughlin commented: “While homebuyers are certainly welcoming the marginal drop in rates, they remain near two-decade highs and continue to present challenges to both buyers and sellers alike.
“Though rates are higher than forecasted, it is important to note this is because the Fed is currently relying on data-driven decision making. For mortgage rates to drop more, the Fed needs to see more evidence of slowing inflation vis-a-vis lower CPI readings and moderating employment growth. Overall, we anticipate inflation will continue to slow and will allow mortgage rates to decrease to around 6.5% by the end of 2024/early 2025.
“As the final weeks of the spring buying season wane, we can all but be assured that this year’s peak season will be a letdown compared to beginning-of-the-year forecasts. Pending home sales slowed last week to a four-year low, and inventory levels continue to rise by about 30% year-over-year. This means buyers are sitting in a bittersweet market right now: they have the most options since before the pandemic, but are stymied because of rising prices and stubbornly high mortgage rates. Given such conditions, we anticipate the rest of the year to bring a luke-warm housing market with the hopes that falling mortgage rates and rising inventory entices seasonally unorthodox buyers back into the market.”
